Reliance Partners, the transportation sector focused commercial insurance broker, has announced a new investment from Carousel Capital, a private investment firm based in Charlotte, North Carolina.
In order to recapitalise the firm, Carousel Capital has partnered with Reliance management and Lamp Post Group, a venture incubator.
Established in 2009 in Chattanooga, Tennessee, Reliance has a specialist focus in commercial transportation risk management solutions, and boasts nearly $500 million in gross written premiums. The broker provides access to a full suite of insurance solutions to more than 8,000 truck fleets and freight brokerage customers across the U.S.
Andrew Ladebauche, Chief Executive Officer (CEO) of Reliance, commented: “We chose Carousel because of their partnership approach, our alignment on strategy for growth, and their ability to help us achieve our goal of reaching $1+ billion in premiums in the next 3 years.”
“Our company is at an inflection point, and after getting to know Carousel over the past two years, we are thrilled to have the opportunity to partner with them for both financial support as well as strategic guidance. Their experience fits perfectly with our strategy, where we are today as a company, and where we want to take Reliance over the next decade,” added Chad Eichelberger, President of Reliance.
Al Welch, Partner at Carousel Capital, said: “We were drawn to this partnership due to the strength of the team, their unparalleled track record of organic growth, differentiated sales strategy, and customer-centric focus. Reliance is the leading domain expert in transportation risk management in the U.S., and is uniquely positioned within a very large and fragmented market. We are thrilled to partner with management and help the Company accelerate and achieve its growth objectives.”
While Jason Schmidly, Managing Partner at Carousel Capital, noted: “The opportunity with Reliance and management intersects so well with our past experience in insurance services, insurtech, and transportation. This partnership represents our continued belief in an underlying theme in insurance services – technological innovation drives efficiency and facilitates a better experience for all stakeholders.”
Lamp Post Group Co-Founder Ted Alling, added: “We are beyond proud of the Reliance team and what they have accomplished over the course of our partnership and are excited to continue as investors to support the business.”
The investment was funded with equity from Carousel Capital’s sixth fund, with senior debt financing provided by Apogem Capital. K&L Gates served as legal advisor to Carousel and Bradley served as legal advisor to Reliance.
